Meanwhile, there are also fears over the impact on trade of the current situation in Saudi Arabia, where the Kingdom is facing pressure over the death of prominent Saudi critic journalist Jamal Khashoggi.

The country is one of the world’s largest oil exporters and investors are concerned about the threat of possible sanctions.

While Charles Schwab analysts said these general fears were “exacerbating already skittish global sentiment”.

Neil Wilson, chief market analyst for Markets.com, said the general tone was “not good”. He said it was “hard to say” what was driving the falls, but “the old adage that the market hates uncertainty holds true”.

“But it’s not all geopolitical noise and fears about rates – some notable earnings announcements have also rocked confidence,” he said, noting that disappointing performances from 3M and Caterpillar had hit the Dow’s performance.